1

CHAPTER - I INTRODUCTION1.1 The Airline Industry- Overview An airline provides air transport services for traveling passengers and freight. Airlines lease or own their aircraft with which to supply these services and may form partnerships or alliances with other airlines for mutual benefit. Generally, airline companies are recognized with an air operating certificate or license issued by a governmental aviation body. Airlines vary from those with a single aircraft carrying mail or cargo, through fullservice international airlines operating hundreds of aircraft. Airline services can be categorized as being intercontinental, intra-continental, domestic, regional, or international, and may be operated as scheduled services or charters. Few inventions have changed how people live and experience the world as deeply as the invention of the airplane. World War II, like World War I, brought new life to the airline industry. During the both World Wars, government subsidies and demands for new airplanes vastly improved techniques for designing and building them. World War II brought tremendous long run gains for the development of the air transportation industry including, a large body of experienced pilots, a large collection of aircrafts used in the war field and above all the increased public interest to fly due to the motivation given by the experienced military personnel. Following the Second World War, the first commercial airplane routes were set up in Europe. The next dramatic step in commercial aviation was the adoption of jet liners during the 1950s. This provided increased travel speeds, smoother flights and enlarged passenger-seating capacity. The airline industry again leaped forward in the 1970s with the introduction of wide-bodied aircrafts like Douglas DC-10, Boeing 747s. The advantage was the increase in passenger comfort and seating and freight capacity. The 1980s witnessed still further improvements in aircraft technology.

2 The industry has progressed to the point now where it would be hard to think of life without air travel. It has shortened travel time and altered our concept of distance, making it possible for us to visit and conduct business in places once considered remote. Many airlines foresaw a future explosive demand for civil air transport, for both passengers and cargo. The global airline industry, counting both domestic and international carriers, is a giant industry. As the airline industry grew, new brands of airlines started coming up and so did the travel industrys dependency on it. If the airline industry could be described in three words, they would be "intensely competitive market." Air transport forms a unique global network linking people, countries and cultures and lays a vital role in the further integration and development of the world. It is increasingly accessible to a greater number of people who can now afford to travel by air for leisure and business purposes. Some of the salient features of air transport are: Over 1.8 billion passengers use the worlds airlines for business and leisure travel. Research indicates that by 2012, this number cold exceed 2.3 billion Air transport is essential for world business creating jobs and opening p new market opportunities by attracting businesses to locations in the developed and developing world. It moves products and services quickly over long distances enabling economic and social participation by outlying communities. Air transport provides 28 million direct, indirect and induced jobs worldwide, a figure that is expected to rise to 32 million by 2012. The combined direct, indirect and induced employment created at airports is 4000 jobs per million passengers served. The location of the airport creates an economic ripple effect, attracting other industries and business activities, and secondary support functions.

Over 40% of world trade of goods (by value) is carried by air. Aviation is directly linked to the tourism industry, generating receipts of 700 million euro per day, and creating considerable employment in the aircraft and engine manufacturing industries and related activities. The airline industry is classified into four categories by the Department of

Transportation (DOT):

International - 130+ seat planes that have the ability to take passengers just about anywhere in the world. Companies in this category typically have annual revenue of $1 Billion or more.

National - usually these airlines seat 100-150 people and have revenues between $100 million and $1 billion. Regional - companies with revenues less than $100 million that focus on short-haul flights. Cargo - these are airlines whose main purpose is to transport goods.

1.1.1 Major challenges facing the airline industry Airport capacity, route structures, technology, and costs to lease or buy the physical aircraft are significant in the airline industry. Other large issues are:

Weather - The problem is that weather is variable and unpredictable. Extreme heat, cold, fog, and snow can shut down airports and cancel flights (which costs money). Weather is also the second-largest cause of flight accidents.

Fuel Cost - on average, fuel can make up 14-16% of an airline's total costs, although efficiency among different carriers can vary widely. Short haul airlines typically get lower fuel efficiency because take-offs and landings consume high amounts of jet fuel.

Labor - it is estimated that 40% of an airline's expenses are used to pay pilots, flight attendants, baggage handlers, dispatchers, customer service, and others.

As a result of globalization the government opened the sky to many new airlines. Consequently, the monopolists are facing competition from newcomers. In many ways, the biggest winner in the deregulated environment was the air passenger. Indeed, the U.S. witnessed an explosive growth in demand for air travel, as many millions who had never or rarely flown before became regular fliers, even joining frequent flyer loyalty programs and receiving free flights and other benefits from their flying. New services and higher frequencies meant that business fliers could fly to another city, do business, and return the same day, for almost any point in the country. The result of liberalization was customer delight. Since there are many options for the customers they will go for the best. So every firm tried to make their products best to attract new customers at the same time maintain existing customers. Another reason why airlines want to retain customers is the cost. The commercial aviation industry as a whole was affected by the September 11th incident and the crisis in the Middle East. This led to the reduction in passenger traffic. As a result many airlines could not survive. Due to high fuel prices and other taxes many airlines wound up their services. Historically, air travel has survived largely through state support, whether in the form of equity or subsidies. Today, the pace of change in the airline industry is faster than ever before. The industry is becoming increasingly liberalized. The former blanket of regulatory protection is being swept away and airlines are being forced to compete in all the aspects of product, price and service. Its structure is changing, with airlines grouping together through strategic alliances, equity swaps and franchising arrangements into socalled mega-carriers. The segmentation of the market is evolving, with airline customers becoming more demanding and, often, more price- sensitive as well. Airline industry is one of the most competitive and growing industries in the world as it leads to economic growth, world trade, international investment and tourism. In the last decade, it has grown strongly by 7% per year for both business and leisure purposes.

5 Airline industry is considered as one of the fastest expanding sectors of the world with growth rates 2.4 times above the GDP rates on average. It is also predicted to grow by an average of 5 % a year from 2000 to 2010 (INTERNATIONAL AIR TRANSPORT ASSOCIATION).It is affected by the economical growth, trade and political factors. As an economical factor, the increase in oil prices destroyed the profitability of the global airline industry, accordingly it losses around $6 billion in 2005 (INTERNATIONAL AIR TRANSPORT ASSOCIATION). Due to the unstable political and economical situation, many airlines companies started to modify their strategies and services to survive and succeed in the airline industry. For example, many companies invested heavily in the quality of services they provide by offering, e-booking system, new interactive entertainment systems, more comfortable seats, low cost carriers and many technological techniques.. Overall, the airline industry will recover as the number of passengers seems to be doubled by 2010 to exceed 2.3 billion due to the tourism, trade and economic development (INTERNATIONAL AIR TRANSPORT ASSOCIATION). Thus, Successful airlines will be those that continue reducing their costs and improving their services by differentiating from competitors to secure a strong position in the aviation market. 1.1.2 Airline personnel The various types of airline personnel include: Flight operations personnel including flight safety personnel.

Flight Crew, responsible for the operation of the aircraft. Flight crew members include:o

Pilots (Captain and First Officer: some older aircraft also required a Flight Engineer and or a Navigator) Flight attendants, (led by a purser on larger aircraft) In-Flight security Personnel on some airlines

Airlines follow a corporate structure where each broad area of operations (such as maintenance, flight operations (including flight safety), and passenger service) is supervised by a vice president. Larger airlines often appoint vice presidents to oversee each of the airline's hubs as well. Airlines employ lawyers to deal with regulatory procedures and other administrative tasks.

1.2 Problem of the Study

7 Increasing competition from private players Due to less man power the airlines in Coimbatore international airport are unable to manage the passenger. Response towards the passenger by Coimbatore international airport is less because of limited airlines. The quality level is low when comparing to other international airports. Continuous shifts in regulatory environment which has led to the growing passenger sophistication.

1.3 Aim and Objectives of the Study The primary aim of this research is to examine the passenger satisfaction levels in airline sector with special reference to Coimbatore international airport. To acquire a vibrant knowledge about airline industry and get through awareness regarding customer satisfaction. To examine passenger satisfaction in airline industry with reference to Coimbatore international airport. To understand and analyze the role of quantity of service in affecting passenger satisfaction in airline sector in context with Coimbatore international airport. To delineate the most important current issues surrounding passenger satisfaction. To assess the passenger satisfaction of service quality of airlines.

1.4 Scope of the Study

This study includes direct interaction with the passengers and this help us to know the passenger satisfaction level to great accuracy. This study is of great importance to the airlines which will know about the passengers preference to travel in airlines. The airlines will gain information about passengers preference depending on their response. So, the scope of the study is to achieve passenger satisfaction.

1.5 Period of study The study conducted during the period of December - 2011 to April - 2012.

1.6 Research Methodology Research comprises defining and redefining of problem, collecting, organizing and evaluating data, making deductions and reaching conclusions.

The study required both primary and secondary data.

1.6.1 Sources of Data

9 The data for this study is collected from primary and secondary sources. The secondary data and the relevant material were collected from the magazines, company profiles, broachers, etc. The primary data source for the study is the passengers of Airlines in Coimbatore International Airport.

1.6.2 Primary data Since primary data is collected at hand it calls for a decision making on research approaches, Questionnaire method has been used to collect the data. For this project the datas were collected by Questionnaires.. The main advantages with this primary data's are that they give more information in greater depth and have greater flexibility. 1.6.3 Secondary data Secondary data consist of information that already exists somewhere, having been collected for another purpose. It is obtained more quickly and at a lower cost. Secondary data provides the necessary information to do the work. Generally the different sources of secondary data are internal sources, prior research reports, government publications which provide summary data on demographics, economic, social and other aspects. Periodicals and books, commercial data and international data are the other sources of secondary data. The secondary data for this study were collected from different sources like books, magazines, journals, newspapers and websites.

10 The collected data was analyzed by using both quantitative and qualitative techniques. Under the qualitative techniques, the collected data was converted into numerical format in appropriate tables with percentage and diagrams. Each numerical format was described by using qualitative techniques used in this research

1.8 Tools Used For Data Analysis As a tool or as a device used for the research a well structured questionnaire is adopted. The questionnaire consists of closed-ended questions where the respondent is forced to select an answer from the given choices. Under closed-ended questions there are multiple choices, so that the RESPONDENTS dont have any problem to answer. By using the questionnaire, face to face interview were also possible. SPSS and MS-EXCEL are also used to analyze the primary data. The mathematical tool used in this study is Simple Percentage analysis.

1.9 Limitations of the Study Every study has its limit, so does this study the major limitation was the time constraint. Another limitation of primary data is that they are very much time consuming and the researcher cannot be sure whether the information received is relevant, accurate, current and unbiased. We will get only a vague idea about the work. Another limitation of the study relates with the security of the airport in Coimbatore. Due to the security reason, Airport authorities cant issue pass. That affects the independence of doing work. So researcher could only get limited amount of primary data. Hence this research mainly depends upon secondary data. But secondary data may not always provide all the necessary data that is required for the project.

11

Chapter II THEORETICAL FRAMEWORK

2.1 IntroductionAviation sector plays crucial role in moving passengers or goods from one place to another either it may be domestic or international, due to economic globalization and technical advancements, the airline industry is facing stiff competition. According to in the industry like airline, quality of service is significant because providing excellent quality of service to customers is necessary for the continued existence of the sector. Quality of service in airline industry is the focal point of satisfaction by travelers, travelers loyalty, and travelers choice of airline. Therefore, offering better service quality may deliver more customer satisfaction which will result in attracting more customers and increasing profits in business. Customer satisfaction is assessed to play a vital role in every business model especially in service industries such as tourism, hospitality and airlines. The high level of customer satisfaction will directly leads to high returns by reducing expenditure like marketing, and word-of-mouth.

It is clearly evident that customers who are happy and delighted will attract the new customers by word of mouth; this will impact on increase in sales, thus resulting in profits to the firm. Hence customer satisfaction proves to be an important aspect in airlines sector. Customer satisfaction derives from assessing customer perceptions and performance. 2.2 Customer Satisfaction Customer satisfaction may be described as the notion which customers may encounter

12 about the products or services of a specific brand or business firm when the customer expectations have been reached or surpassed the existence of that particular goods or service. The satisfaction is an individual's feeling of pleasure or dissatisfaction obtained from comparing a good's possible outcome in contrast to the customer's demands. An organization may increase it sales and customer's loyalty by offering excellent satisfaction by the customer. Therefore customer satisfaction has happened to be one of the focal point for all business especially those in service industry. Customer satisfaction is gauged to sustain existing customers and as a result, effectiveness and growth of business. To maintain customer expectation and customer loyalty in order to gainhigher long-term performance of the company, customer satisfaction is one of the important factors. Its certain that customer expectation meets the customer satisfaction, this will be the driving force to build the strong relationship between client and a company and also this will directly lead to more and more profitable to the organization. There are two key analysis of satisfaction, Satisfaction itself a course of action as well as an end results.

Customer processes.

satisfaction

is

constantly

the

outcome

of

the

observation

Customer satisfaction may be implied as a decision relied on the growing

practice through a distinct goods or service relatively than a business event. Customer satisfaction may be explained as an individual's complete assessment of the performance of a product or service till now. Customer satisfaction as a post purchase thoughts framed through a rational evaluation of the quality that a customer expected to obtain from an exchange and the intensity of quality the customer notices actually receiving from the trade. To be specific it is the state of customer perceptions and expectations. Customer satisfaction is a fundamental factor in improving production process and end user relationship.

The importance of customer satisfaction and its use for determining the quality from the Customers outlook has been highlighted by many researchers in airline industry. Customer contentment is the emotion or outlook of a client towards a goods or service following it had been consumed. Customer happiness is the significant end result of endorsement activity, where it operates as a link between various levels of consumer

13 purchasing activities.

2.3 Customer Satisfaction in Airline Sector Airline sector is considered to be major industry. In the year 1988, the sector contributed $10.2 billion to GDP. The services offered by the industry are at par with the international standards catering to the needs of both domestic and international passengers. The airline sector is very significant to the tourism as citizens in the country are engaged in this sector. Satisfaction of a customer is a purpose of observed quality and notions of degree to which remarked quality unsuccessful to counterpart customer expectations. Customers will constantly evaluate the remarked performance of goods or service with little performance mark. The customers are merely satisfied and they find it simple to shift when other firm is providing a better cost or package while the importance of customer satisfaction is highlighted in business where competition is severe. The primary objective of airline sector is to provide excellent service and competency. The excellent service is vital while the number of absolutely contented customers segment is an important factor as assessed by some analysts for high profits. A business organization must regularly gauge consumer satisfaction in order to analyze and identify whether clients were delighted or not. In the airline sector the degree of customer happiness is plainly recognized off late in the process, whilst the majority of the customers spent the cash by now. According to the literature, outstanding service is achieved through

committed and loyal staff. To provide a reasonable level of service and quality stated that a firms approach should be focused in improving the skills and ensuring efficiency,

14 motivation and commitment of the employees. Airline sector may develop the scope of achievements if they allow its workforce to take individual responsibility and go an extra mile to make the customers happy. Customer satisfaction is when the consumer is delighted with the service delivered by the airline sector that meets the client desires, wants and expects. Airline industry should focus on making customers happy and should allocate finances on providing excellent customer service.

CHAPTER III PROFILE OF THE AIRLINES 3.1 COMPANY PROFILE

3.1.1 INDIGO AIRLINES

Indigo Airlines was an American airline headquartered in Chicago, Illinois. It is generally regarded as the worlds first business jet airline. It was founded in 1997 by aviation veteran and University of Chicago graduate Matt Anderson; business executive and Embry-Riddle Aeronautical University alumnus John N. Fenton and McKinsey consultant and MIT PhD Tom. During its life, its headquarters were at first located in the Near North side area of Chicago, while later in its life its headquarters were at Chicago midway Airport. IndiGo is built for people with things to do, places to be, people to see - who don't want to waste time, money or energy in the process. By minimizing the cost/time/tension of air travel, IndiGo opens up a country full of opportunities. With IndiGo, you've got a billion reasons to fly! The IndiGo team uses all of these resources to design processes and rules that are safe and simple, that make sense, and that cut waste and hassles, which in turn ensures a uniquely smooth, seamless, precise, gimmick-free customer experience at fares that are always affordable. IndiGo focuses on doing one thing, and doing it well. Our

One type of airplane - brand-new Airbus A320s One type of fare - low One type of customer service - professional One way to deal with delays and cancellations - honestly

We believe that we can offer the lowest fares by staying focused, which keeps our costs down without cutting corners or compromising on things that matter.

3.1.1.1 Citizen's Charter

IndiGo is built for people with things to do, places to be, people to see who dont want to waste time, money or energy in the process. By minimizing the cost, time and tension of air travel, IndiGo opens up a country full of opportunities. With IndiGo, youve got a billion reasons to fly! IndiGo incorporates the best hardware, software, interface design and personnel from around the world. The IndiGo team uses all of these resources to design processes and rules that are safe and simple, that make sense, and that cut waste and hassles, which in turn ensure a uniquely smooth, seamless, precise, gimmick-free customer experience at fares that are always affordable.

3.1.1.2 History Indigoor "individuals on the go", for the first time allowed individual travelers the ability to reserve and purchase a single seat on a traditional corporate or business jet which then flew a "scheduled" flight like a traditional airline. Prior to Indigo the only business jet services available to consumers consisted of jet ownership or charter, both

16 expensive options to regular airline travel. Indigo is regarded as the originator of two new categories of corporate jet air travel service: per seat, high frequency and the public or commercial corporate jet. Indigo priced its service between its first city pair Chicago and New York City close to a so-called unrestricted coach fare. This allowed travelers an affordable travel option while greatly expanding Indigo's addressable market, growth potential and investment thesis. Indigo's inventory was marketed and sold through American Express Travel Related Services as well as through the American Express Platinum Card program. Indigo was the first business jet airline to list its seat inventory in major Global Distribution Systems such as Sabre and Apollo, under the carrier code "I9" which allowed travel agents easy access to Indigo's services. The Indigo project was also supported by management consultants McKinsey and Company and was additionally advised by corporate identity firm Interbrand (an Omnicom company), public accountants and business advisors Arthur Anderson, public relations firm The Dilenschneider Group and investment bank and financial advisory firm Merill Lynch and Company. Indigo management also argued that the company helped advance the state of general aviation security and pointed to its advanced security procedures that were unique to the industry. Indigo employed its own security personnel and was the first jet charter company to operate sterile flights between general aviation, non-airline facilities. Indigo customers, employees and vendors cooperated with comprehensive identity, background and screening procedures that were unprecedented in the private jet industry. Indigo submitted to numerous TSA security audits and was fully approved by relevant U.S. Government agencies. Comprehensive general and private aviation security continues to be an unresolved public policy issues. By 2004, Indigo had voluntarily idled its operations after challenges in securing additional capitalization. The Indigo concept continues to resonate strongly with the

17 traveling public and in 2005 the Net jets company, backed by Warren Buffett's, Berkshire Hathaway announced its intention to begin scheduled business jet service between Chicago, New York and Los Angeles. Other projects mimicking the Indigo business model include Geneva, Switzerland based Club Airways, started by World Economic Forum founders the Schwab family. Other notable ventures borrowing on the Indigo "per seat" inventory, distribution and pricing strategy include the Dayjet company, Linear Air and various jet membership programs offering "shared per seat charter" services. Several North Atlantic services (sometimes referred to as the "Indigo of the North Atlantic") also directly applied the Indigo concept of a commercial corporate jet but in larger traditional airline aircraft and included Maxjet, Eos and Silver jet. In 2008, a new company called Green jets began non-scheduled per-seat or shared-ride private jet service between major eastern US metropolitan markets. 3.1.1.3 Fleet Indigo's initial fleet consisted of four French-built Dassalut Falcon jets fitted with: large executive style leather seats; a full hot galley; private bathroom; and laptop power outlets. Indigo was headquartered in Chicago, Illinois at Chicago Midway International Airport in the former Ameritech corporate hangar facilities. This was a comprehensive, 220,000-square-foot (20,000 m2) co-located hangar, office complex, private passenger terminal and maintenance facility. Indigo was a fully vertically integrated aviation company and fully owned, employed and controlled its own aircraft fleet, pilots, dispatchers and maintenance services. The company operated as a Federal Aviation Administration FAR 135 commercial operator and additionally was certified by the United States Department of Transportation under parts 41101 and 380 as a public charter operator. Indigo was the first business jet commercial operator to receive an additional DOT fitness approval and was granted a Certificate of Public Convenience and Necessity. As part of its overall planning and growth objectives, Indigo early in its initial operations distributed a request for proposal to several global aerospace manufacturers for

18 a next generation regional business jet to eventually replace its initial aircraft. Brazilian manufacturer Embraer both embraced Indigo's business model and responded strongly to the RFP in its efforts to introduce its new corporate shuttle aircraft, the "Legacy" jet. Indigo was the first U.S. certified commercial operator of the Legacy and launched service with this new, environmentally advanced stage 4 aircraft in 2003 in a 16-seat all business-class service.

3.1.2 JET AIRWAYS

Jet Airways is the largest Indian airline based out of Mumbai, Maharashtra. It operates over 400 flights daily to 76 destinations worldwide. Its main hub is Mumbai, with secondary hubs at Delhi, Kolkata, Chennai, Cochin, Ahmedabad, and Bengaluru. It has an international hub at Brussels Airport, Belgium. Jet Airways is owned by Naresh Goyal. 3.1.2.1 History Early years Jet Airways was incorporated as an air taxi operator on 1 April 1992. It started commercial operations on 5 May 1993 with a fleet of four leased Boeing 737-300 aircraft. In January 1994 a change in the law enabled Jet Airways to apply for scheduled airline status, which was granted on 4 January 1995. It began international operations from Chennai to Colombo in March 2004. The company is listed on the Bombay Stock Exchange, but 80% of its stock is controlled by Naresh Goyal (through his ownership of Jets parent company, Tailwinds). It has 10,017 employees (as at March 2007). Naresh Goyal who already owned Jet Air (Private) Limited, which provided sales and marketing for foreign airlines in India set up Jet Airways as a full-service scheduled airline to compete against state-owned Indian Airlines. Indian Airlines had enjoyed a monopoly in the domestic market between 1953, when all major Indian air transport providers were nationalized under the Air Corporations Act (1953), and January 1994,

19 when the Air Corporations Act was repealed, following which Jet Airways received scheduled airline status. Air Sahara buyout In January 2006 Jet Airways announced that it would buy Air Sahara for US$500 million in an all-cash deal, making it the biggest takeover in Indian aviation history. It would have resulted in the country's largest airline but the deal fell through in June 2006. On 12 April 2007 Jet Airways agreed to buy out Air Sahara for INR14.5 billion (US$340 million). Air Sahara was renamed JetLite, and was marketed between a low-cost carrier and a full service airline. In August 2008 Jet Airways announced its plans to completely integrate JetLite into Jet Airways. Present In October 2008 Jet Airways laid off 1,900 of its employees, resulting in the largest lay-off in the history of Indian aviation. However the employees were later asked to return to work; Civil Aviation Minister Praful Patel said that the management reviewed its decision after he analyzed the decision with them. In October 2008 Jet Airways and rival Kingfisher Airlines announced an alliance which primarily includes an agreement on code-sharing on both domestic and international flights, joint fuel management to reduce expenses, common ground handling, and joint utilisation of crew and sharing of similar frequent flier programmes. On 8 May 2009 Jet Airways launched its low-cost brand, Jet Konnect. The decision to launch a new brand instead of expanding the JetLite network was taken after considering the regulatory delays involved in transferring aircraft from Jet Airways to JetLite, as the two have different operator codes. The brand was launched on sectors that had 50% or less load factor with the aim of increasing it to 70% and above. Jet officials said that the brand would cease to exist once the demand for the regular Jet Airways increases.

20 According to a PTI report, for the third quarter of 2010, Jet Airways (Jet+JetLite) had a market share of 26.9% in terms of passengers carried, thus making it a market leader in India, followed by Kingfisher Airlines with 19.9%. 3.1.2.2 Subsidiaries JetLite JetLite was a wholly owned subsidiary of Jet Airways. It was established as Sahara Airlines on 20 September 1991 and began operations on 3 December 1993 with two Boeing 737-200 aircraft. Initially services were primarily concentrated in the northern sectors of India, keeping Delhi as its base, and then operations were extended to cover all the country. Sahara Airlines was rebranded as Air Sahara on 2 October 2000. On 12 April 2007 Jet Airways took over Air Sahara and on 16 April 2007 Air Sahara was renamed as JetLite. JetLite operated a fleet of mixed ownedleased Boeing 737 next generation aircraft and Bombardier CRJ-200 ER. JetLite ceased operations on 25 March, 2012 after merger with Jet Konnect. Jet Konnect Jet Konnect is the low-cost brand of India-based Jet Airways. It was launched on 8 May 2009, and shares the same airline designation as Jet Airways. It operates a mixed fleet of ATR 72-500s and Boeing 737-800. The rationale for launching Jet Airways Konnect was to close down loss-making routes and divert the planes to more profitable routes with higher passenger load factor. Jet already ran a low-cost airline named JetLite. According to Jet Airways, the decision to launch a low-cost brand instead of expanding the existing JetLite was taken to avoid the regulatory delays associated with moving excess aircraft and assets from Jet Airways to JetLite, which have separate operating codes. Jet Konnect offers a no frills flight where meals and other refreshments have to be purchased on board. To identify if the flight is a full service or Konnect the flight numbers for Konnect are in the series 9W 2000-2999. Jet Airways merged the JetLite brand into Jet Konnect on 25 March 2012.

0 30 190 226 0 18 236 254

Source: www.Jetaiways.com 3.1.2.4 Incidents and Accidents On 1 July 2007, Jet Airways Flight 3307, an ATR 72-212A (registered VT-JCE) which was flying on the Bhopal-Indore route was involved in an accident which was caused by a storm. There were no fatalities amongst the 45 passengers and 4 crew on board, however the aircraft suffered damages beyond repair.

3.1.3 KINGFISHER AIRLINES

23 Kingfisher Airlines Limited is an airline group based in India. Its head office is in Andheri (East), Mumbai and Registered Office in UB city, Banglore. Kingfisher Airlines, through its parent company United Breweries Group, has a 50% stake in low cost Kingfisher Red. The airline has been facing financial issues for many years. Until December 2011, Kingfisher Airlines had the second largest share in India's domestic air travel market. However due to the severe financial crisis faced by the airline, it has the fifth largest market share currently, only above GoAir. Kingfisher Airlines was the holder (along with only seven other airlines) of the 5star rating by Skytrax along with Cathay Pacific, Qatar Airways, Asiana Airlines, Malaysia Airlines, Singapore Airlines, and Hainan Airlines. However, in light of the current turmoil of the airlines, Skytrax ranking for Kingfisher Airlines has now been suspended. Kingfisher operates 120 daily flights with regional and long-haul international services. In May 2009, Kingfisher Airlines carried more than 1 million passengers, giving it the highest market share among airlines in India. Kingfisher also won the Skytrax award for India's best airline of the year 2011. Kingfisher Airlines is also the sponsor of F1 racing outfit, Force India, which Vijay Mallya also owns. 3.1.3.1 History Kingfisher Airlines was established in 2003. It is owned by the Bengaluru based United Breweries Group. The airline started commercial operations in 9 May 2005 with a fleet of four new Airbus A320-200s operating a flight from Mumbai to Delhi. It started its international operations on 3 September 2008 by connecting Bengaluru with London. The airline is currently going through some bankruptcy problems, forcing the airline to ground many destinations and aircraft.

24 3.1.3.2 Financial difficulties Ever since the airline commenced operations in 2005, it has been reporting losses. After acquiring Air Deccan, Kingfisher suffered a loss of over 1,000 crore (US$199.5 million) for three consecutive years. By early 2012, the airline accumulated losses of over 7,000 crore (US$1.4 billion) with half of its fleet grounded and several members of its staff going on strike. Kingfisher's position in top Indian airlines on the basis of market share had slipped to 5 from 2 because of the crisis. As response, Dr. Vijay Mallya called on the Chairman of Central Board of Excise and Customs and offered to pay up the dues by 13 December 2011. The Kingfisher bank accounts were unfrozen on 14 December 2011. Due non-payment, several Kingfisher's vendors had filed winding up petition with the High Court. As on November 2011, winding up petition of seven creditors was pending before the Banglore High Court. In the past Lufthansa Technik and Bharat Petroleum Corporation Limited (BPCL) had also filed winding up petition against Kingfisher Airlines. During late February 2012, Kingfisher Airlines started to sink into a fresh crisis. Several flights were cancelled and aircraft were grounded. The cash-strapped airline claimed that the disruptions will continue for four days due to unexpected events including bird strikes which rendered aircraft out of service. The airline shut down most international short-haul operations and also temporarily closed bookings. Out of the 64 aircraft, only 22 were known to be operational by 20 February. With this, Kingfisher's market share clearly dropped to 11.3%. The cancellation of the flights was accompanied by a 13.5% drop in the stocks of the company on 20 February 2012. The CEO of the airlines, Sanjay Agarwal was summoned by the Directorate General of Civil Aviation to explain the disruptions of the operations. In March 2012, the airline was suspended by the International Air Transport Association from using its inter-airline fund clearing system, the suspension means the airline will have to deal directly with other airlines when sharing revenue on services.

25 Due to the ongoing financial crisis, an Airbus A330-200 aircraft was impounded at London Heathrow Airport in the United Kingdom under Court Orders due to unpaid fees to aircraft leasing companies and RBS. 3.1.3.3 Fleet Current Due to the financial problems of Kingfisher Airlines, the fleet was drastically reduced from 63 to 23. A majority of the fleet was repossessed by lessons in March 2012. Although Airbus has not cancelled/suspended the orders yet, but it is unlikely that Kingfisher Airlines will start taking the deliveries in near future. The Kingfisher Airlines fleet consists of the following aircraft (as of April 2012): Table No: 3.1.3.3.1 Kingfisher Airlines Fleet Aircraft Airbus A319-133 Airbus A320-232 Airbus A321-232 Airbus A330-223 ATR 42-500 ATR 72-500 Boeing 727-044 Total Pre-2012 Fleet Kingfisher Airlines' fleet mainly consisted of ATR 42, ATR 72 and Airbus A320 family aircraft for domestic and short haul services and Airbus A330-200s for international long-haul services. The average age of its fleet as of January 2009 was 2.3 years. All ATR's and a few aircraft from the A320 family are used for Kingfisher Red service. In Fleet 1 5 1 1 2 12 1 23 VIP for UB Group Dry leased Notes VIP for UB Group

27 suffered substantial damage, but all 46 passengers and crew escaped unharmed. In November 2010, the Directorate General of Civil Aviation released its final report into the accident. It revealed that the cause of the accident was pilot error, with the aircraft landing at too high a speed and too far down Runway 27A, which was the designation given to Runway 27 whilst it was being operated at a reduced length due to the closure of Runway 14/32 for maintenance.

3.1.4 AIR INDIA Air India is the flag carrier airline of India. It is part of the government of India owned Air India Limited (AIL). The airline operates a fleet of Airbus and Boeing aircraft serving Asia, Europe and North America. Its corporate office is located at the Air India Building at Nariman point in South Mumbai. Air India has two major domestic hubs at Indira Gandhi International Airport and Chatrapathi Shivaji International Airport. An international hub at Dubai International Airport is currently being planned.

28 Air India has the third largest share in India's domestic air travel market, behind Jet Airways and IndiGo. Following its merger with Indian, Air India has faced multiple problems, including escalating financial losses, discontent amongst employees, and poor customer service. Between September 2007 and May 2011, Air India's domestic market share declined from 19.2% to 14%, primarily due to stiff competition from private Indian carriers. In August 2011, Air India's invitation to join Star Alliance was suspended due to its failure to meet the minimum standards for the membership. In October 2011, talks between the airline and Star Alliance have resumed. In April 2012, the Indian government granted another bailout package to Air India, including Rs300 billion ($5.8 billion) of subsidies. 3.1.4.1 History Early years Air India was founded by J. R. D. Tata in July 1932 as Tata Airlines, a division of Tata Sons Ltd. (now Tata Group). On 15 October 1932, J. R. D. Tata flew a single-engine De Havilland Puss Moth carrying air mail (postal mail of Imperical Aiways) from Karachi's Drigh Road Aerodrome to Bombay's Juhu Airstrip via Ahmedabad. The aircraft continued to Madras via Bellary piloted by former Royal Air Force pilot Nevill Vintcent. In 1932 Air India was based out of a hut with a palm thatched roof at Juhu Aerodrome and had 1 pilot and 2 apprentice mechanics along with 2 piston engined aircraft, one Puss Moth and one Leopard Moth aircraft. Early 1990s In 1993, Air India took delivery of the flagship of its fleet when the first Boeing 747-400 named Konark (registered VT-ESM) made history by operating the first non-stop flight between New York City and Delhi. In 1994 the airline was registered as Air India Ltd. In 1996, the airline inaugurated service to its second US gateway at OHare International Airport in Chicago. In 1999, the airline opened its dedicated Terminal 2-C at the renamed Chatrapathi Shivaji International Airport in Mumbai.

29 2000 Present In 2000, Air India introduced services to Shanghai and to its third US gateway at Newark Liberty International Airport in Newark. In May 2004, Air India launched a wholly owned low cost airline called Air-India Express. Air India Express connecting cities in India with the Middle East, Southeast Asia and the Subcontinent. In 2004 Air India launched flights to its fourth US gateway at Los Angeles International Airport in Los Angeles (which has since been terminated) and expanded its international routes to include flights from Ahmedabad, Amritsar, Banglore and Hyderabad. On 1 December 2009, Air India introduced services to its fifth US gateway at Washington Dulles International Airport in Washington D.C., accessed via a stopover at JFK Airport in New York City. This service has been terminated. 3.1.4.2 Merger with Indian Airlines In 2007, the Government of India announced that Air India would be merged with Indian Airlines. As part of the merger process, a new company called the National Aviation Company of India Limited (NACIL) was established, into which both Air India (along with Air India Express) and Indian Airlines (along with Alliance Air) will be merged. On 27 February 2011, Air India and Indian Airlines merged along with their subsidiaries to form Air India Limited. 3.1.4.3 Financial crisis Around 20062007, the airlines began showing signs of financial distress. The combined losses for Air India and Indian in 2006-07 were 770 crores ( 7.7 billion). After the merger of the airlines, this went up to 7,200 crores ( 72 billion) by March 2009. This was followed by restructuring plans which are still in progress. In July 2009, SBI Capital Markets India Ltd was appointed to prepare a road map for the recovery of the airline. The carrier sold three Airbus A300 and one Boeing 747-300 M in March 2009 for $18.75 million to survive the financial crunch.

30 As of March 2011, Air India has accumulated a debt of Rs. 42,570 crore (approximately $10 billion) and an operating loss of Rs. 22,000 crore, and is seeking Rs. 42,920 crore from the government. For the past three months (June, July, August 2011), the carrier has been missing salary payments and interest payments and Moodys Investor Service has warned that missing payments by Air India to creditors, such as the State Bank of India, will negatively affect the credit ratings of those banks. A report by the Comptroller and Auditor General (CAG) blamed the decision to buy 111 new planes as one of the major causes of the debt troubles in Air India; in addition it blamed on the ill timed merger with Indian Airlines as well. Due to high fuel and loan costs, Indian government has already pumped 32 billion rupees into Air India since April 2009 and in March 2012 government bailed out Air India Ltd. with 67.5 billion rupees ($1.4 billion) which the amount almost double of the federal government has spent on new hospitals over the past three years. Air India's corporate headquarters is located at the Air India Building at Nariman Point in South Mumbai. The airline moved there in 1970. The Air India Building also serves as a regional office for Indian. Return to profitability plans The new Chairman and Managing director wants to change the order of some of the 111 planes ordered in 2006 to get narrow-body aircraft instead of the wide-body aircraft. 3.1.4.4 Subsidiaries Air India Cargo In 1954, Air India Cargo started its freighter operations with a Douglas DC-3 Dakota aircraft, giving Air India the distinction of being the first Asian airline to operate freighters. The airline operates cargo flights to many destinations. The airline also has ground truck-transportation arrangements on select destinations. A member of INTERNATIONAL AIR TRANSPORT ASSOCIATION, Air India carries all types of cargo including dangerous goods (hazardous materials) and live animals, provided such shipments are tendered according to INTERNATIONAL AIR

31 TRANSPORT ASSOCIATION Dangerous Goods Regulations and INTERNATIONAL AIR TRANSPORT ASSOCIATION Live Animals Regulations. At the warehouse in Mumbai, Air India has developed a system of inventory management for cargo handling of import/export functions. This takes care of the entire management of cargo, supports Electronic Data Interface (EDI) messages with Indian Customs and replaces to a great extent existing paper correspondence between Customs, Airlines, and the custodians. This also replaces manual handling and binning of cargo at the warehouse in Mumbai by Air India. Air India Express Air India Express is the airline's low-cost subsidiary which was established in 2005 during the aviation boom in India. It operates scheduled passenger services primarily to the Persian Gulf and South East Asia. Air India Express is currently the only airline in Air India Limited which posts profits. It operates a fleet of Next Generation Boeing 737-800 aircraft. Cochin International Airport is the main hub of the airline from which it has connections to almost all the Gulf countries.

3.1.4.5 Fleet The Boeing customer code for Air India is 37, meaning a model name of, for example, a 747-437 (an Air India747-400). As of May 2010, the average age of the Air India fleet is 9.5 years. New aircraft orders

32

On 11 January 2006, Air India announced an order for fifty eight jets - eight Boeing 777-200LR World liners, twenty-three Boeing 777-300ER and twenty seven Boeing 787-8 Dream liners

The airlines received its first Boeing 777-200LR aircraft on 26 July 2007 and Boeing 777-300ER on 10 October 2007. In April 2010, the airline has ordered three Boeing 777-300ERs. Air India expects to get its first Boeing 787 Dreamliner in at the end of May 2012.

3.1.4.6 Accidents and incidents Ten Air India flights have fatally crashed, including those due to terrorist attacks. Air India has a record of 6.82 fatal events per million flights. 1950s

On 11 April 1955 Kashmir princess a Lockheed L-749A Constellation registered (VT-DEP) carrying 19 people (11 passengers and 8 crew) was bombed in midair, killing 16 of the 19 on board.

On 19 July 1959 Rani of Aera a Lockheed L-1049G super Constellation (registered VT-DIN) carrying 46 people (39 passengers and 7 crew) approached Santacruz Airport in conditions of poor visibility due to rain. The captain was using an altimeter with the barometric pressure set at 29.92". An overshoot was delayed and the aircraft crashed and suffered damage beyond repair. There were no fatalities.

The Air India Memorial in Toronto, Canada dedicated to the victims of Air India Flight 182

33 1960s

On 24 January 1966 Air India Flight 101 Kanchenjunga a Boeing 707-420 (registered VT-DMN) carrying 117 people (106 passengers and 11 crew) crashed on Mont Blanc, France, on the border between France and Italy, killing all on board. Among the dead was the noted Indian scientist, Homi J. Bhaba.

1970s

On 1 January 1978 Air India Flight 855 Emperor Ashoka a Boeing 747-237B (registered VT-EBD) crashed into the Arabian Sea after takeoff from Sahara International Airport (now Chatrapathi Shivaji International Airport) in Mumbai, killing all on board (213 persons; 190 passengers, 23 crew).

1980s

On 21 June 1982 Air India Flight 403 Gouri Shankar a Boeing 707-420 (registered VT-DJJ) carrying 99 passengers and 12 crew from Kuala Lumpur International Airport via Madras (now Chennai) crashed at Sahara International Airport after a heavy landing during a rainstorm. The fuselage exploded after starting a late goaround. Two crew members and 15 passengers were killed.

On 23 June 1985 Air India Flight 182 Emperor Kanishka a Boeing 747-347B (registered VT-EFO) was blown up in mid-air, mid-flight by a suitcase-bomb planted by Babbar Kalsa Terrorists allegedly as revenge for the Indian Government's operation on the Golden Temple on June 1984. The flight was on the first leg on its Montreal-London-Delhi-Bombay flight when it exploded off the coast of Cork, Ireland. The plane crashed into the Atlantic Ocean. All 307 passengers and 22 crew on board died. After this incident Air India suspended all services to Montreal.

1990s

34

On 24 December 1999, Friday Indian Airlines Flight 184 (VT-EDW) had 178 passengers on board (most of whom were Indian nationals) that were coming to India after vacationing in Nepal was hijacked, shortly after the aircraft entered Indian airspace at about 17:30 Indian Standard Time. The aircraft was hijacked by gunmen. After touching down in Amritsar, Lahore and Dubai, the hijackers forced the aircraft to land in Kandhahar, Afghanistan. The hijackers released 27 of 176 passengers in Dubai but fatally stabbed one and wounded several others. The hijacking lasted for seven days and ended after India released three militants Mushtaq Ahmed Zargar, Ahmed Omar Saeed Sheikh and Maulana Masood Azhar.

2000s

On 4 September 2009, Air India Flight 829 Konark a Boeing 747-437 (registered VT-ESM) flying on the Mumbai-Riyadh route caught fire at Chhatrapati Shivaji International Airport. The fire started in number one engine while the aircraft was taxing to Runway 27 for take-off. An emergency evacuation was carried out with no injuries among the 228 people (213 passengers and 15 crew) on board.

3.1.5 SPICE JET Spice Jet is a low-cost airline headquartered in Gurgaon, India. It began service in May 2005 and by 2008, it was India's second-largest low-cost airline in terms of market share. Spice Jet was voted as the best low-cost airline in South Asia and Central Asia region by Skytrax in 2007 and 2009. Spice Jet was reported to be far ahead of other lowcost carriers in India like IndiGo, JetLite, Kingfisher Red and GoAir and also full service carriers like Jet Airways and Kingfisher.

35 However, services have been riddled by delays. Some passengers have been left stranded after repeated delay announcements followed by abrupt cancellations. According to reports, more than 17,480 passengers of Spice Jet have been affected by delays of more than two hours in January 2011 alone. That Spice jet is the worst hit among low cost carriers is exemplified by the fact that this number stays unabated at a staggering 15,629 in July 2011. In 2012, the airline again hit the headlines for its debacle in the disabled passenger handling issue for which it has been issued a notice by the Supreme Court. 3.1.5.1 History Early years

MODILUFT logo The origins of Spice Jet track back to February 1993 when ModiLuft, one of India's first post-deregulation airlines that was launched by the Indian industrialist S K Modi, in technical partnership with the German flag carrier Lufthansa. The airline project was started in February, 1993 by S K Modi, Ashutosh Dayal Sharma and Kanwar K S Jamwal and on 5 May 1993 took the first flight from New Delhi to Mumbai. The airline actually started operations within three months of its conception - a record of kinds in itself. It maintained very high standards in flight safety, ground maintenance and on-time performance, owing to a strong support from Lufthansa AG. The team consisting of Indian and German technical staff and pilots was built by Kanwar K S Jamwal, General Manager Projects, a thorough professional himself, was responsible for setting up the Airline and its operations. Captain R L. Kapur and Retired First officer Cdr. S. Raj along with a team of able Airline experts helped further, in meeting the highest standards in the aviation industry and in conforming to the Indian Aircraft Rules set by the Director General Civil Aviation. The first two batches of the cabin crew were extensively trained at the flight crew training facility at Frankfurt. Modiluft was perhaps the only Airline to achieve an average aircraft utilization of a minimum 12 hours per day in Indian Skies. This was no ordinary feat, as it

36 required constant supervision, resources and a team of through professionals at every level to make this possible. 3.1.5.2 Emergence as Spice Jet ModiLuft was the only airline in India to fly a three class configuration compared to others Airlines, It had a First, Business and an Economy Class and an incident free track record of flying. It used Boeing 737-200 Aircraft leased from Lufthansa. ModiLuft did not last very long specially because the business parity of the German and Indian partners was not the same and problems arose. Then the cooperation was broken off and ModiLuft acquired Boeing 737-400 aircraft to replace the 737-200s from Air U K, but the future of ModiLuft was already sealed and the airline ceased operations in 1996. However, the airoperating certificate (AOC) of ModiLuft did not lapse and the airline due to lack of funds changed hands and renamed Royal Airways. Thus, was born Spice Jet following the low cost model. Spice Jet leased 3 Boeing 737-800 Next Generation jet aircraft. Spice Jet chose to buy in modern Boeing NGs after an year long research and study. On March 7, 2005, the Airports Authority of India approved three overnight parking slots (for aircraft) to Spice Jet, with two in Delhi and one in Mumbai. They announced that flights will commence in May after the first of the 30 Boeing 737-800 aircraft arrive in April. Spice Jet opened bookings on May 18, 2005 and results followed immediately as over 37,000 were booked out in just one day, setting a new record in the Asian continent. Red Hot Special Fares were introduced ranging from 99 (US$1.98) to 799 (US$15.94). The first flight was flagged off by the Union Minister of Civil Aviation, Shri. Praful Patel. The first Boeing 737-800 aircraft left Delhi for Mumbai via Ahmedabad on May 24, 2005. It was very successful and by 2008, it was India's second-largest low-cost airline in terms of market share. On 15 July 2008 billionaire Wilbur Ross suggested he would invest 345 crore (US$68.83 million) in the airline. Indian media baron Kalanidhi Maran acquired 37.7% in the business in June 2010. After completing 5 years of flying, Spice Jet was allowed to commence international flights by the Airports Authority of India on September 7, 2010. Spice Jet launched flights from Delhi to Kathmandu and Chennai to Colombo. The first international flight took off on October 7, 2010 from the Delhi airport. On December 9, 2010, Bombardier Aerospace announced that Spice Jet placed a firm order for 15 Q400 NextGen turboprop airliners and

37 has also placed an option to buy another 15 of those. Spice Jet used their fleet of Q400's for short-haul operations. 3.1.5.3 Fleet Table No: 3.1.5.3.1 Spice Jet fleet Aircraft In Service 26 6 7 39 Orders Options Passengers (Economy) 189 212 78 New deliveries since August 2011 Notes 15 dry leased, 11 owned Boeing 737-800 Boeing 737-900ER Bombardier Dash 8 Q400 Total 3.1.5.4 Spice Jet Cargo Along with passenger services, Spice Jet also offers cargo services on the same flight. The service is available on flights connecting Ahmedabad, Agartala, Bagdogra, Bangalore, Chennai, Coimbatore, Delhi, Goa, Guwahati, Hyderabad, Jaipur, Kochi, Kolkata, Madurai, Mumbai, Pune and Visakhapatnam. Between 2 to 3.5 tons of cargo is ferried on each flight ensuring maximum utilization of the aircraft. 3.1.5.5 Incidents 1. On the evening of September 8, 2010 at around 06:40 PM IST, the pilots of flight SG 219 noticed fire on one of the engines while taxiing towards the runway on Delhi's Indira Gandhi International Airport. The plane called for emergency services and the problem was fixed. The plane took off at 08:20 PM with all the passengers safe. However, just 15 minutes into the flight, the pilots reported a steep 21 8 29 15 15 New deliveries since December 2010

38 fall in cabin pressure and made an emergency landing back at the same airport. All the passengers were safe and the plane was grounded for repairs.

2. On February 20, 2012, a lady named Jeeja Ghosh - a teacher at the Indian Institute of Cerebral Palsy in Kolkata was forcefully offloaded from a flight to Goa. Though a frequent air traveler, the lady was forced to stay back because the pilot - Utprabh Tiwari - claimed that she wasn't fit to fly even though the Spice Jet rules say that disabled people can fly. Jeeja issued a complaint against the pilot and claimed that action be taken since the entire differently-abled community was at stake. The airline later relented to the demand and issued a statement apologizing for the inconvenience caused to the passenger and that the issue will be taken seriously. Notwithstanding, Ghosh filed a plea with the apex court. Supreme Court has issued a notice to Spice Jet for causing this mental trauma to a differently-abled woman. Ghosh claimed that pilots like that do not deserve to hold the job and be suspended.

3.1.6 SILKAIR SilkAir (Singapore) Private Limited (Chinese: Shngn Hngkng) is an airline based in Singapore. It is a wholly owned subsidiary of Singapore Airlines and operates scheduled passenger services from Singapore to 31 cities in Southeast Asia, South Asia and China. It has its head office on the fifth storey of Super hub 1. As the regional wing of Singapore Airlines, it serves 31 out of 50 short-haul destinations in the Singapore Airlines Group network, and flew 1.56 million passengers in 2006. It made a profit of S$30 million, as turnover rose 20.4% to $415 million. As of 31 March 2010, SilkAir employs 278 staff. 3.1.6.1 History

39 The airline had its roots as a regional air-charter company in the form of Trade winds Charters, formed in 1976, and using planes predominantly leased from parent company Singapore Airlines serving leisure destinations. Scheduled services were introduced as Trade winds Airlines on 21 February 1989, when it leased McDonnell Douglas MD-87 airplanes for services to six destinations, namely Bandar Seri Begawan, Pattaya, Phuket, Hat Yai and Kuantan from Singapore's Changi Airport and Tioman from Singapore's Seletar Airport. As the carrier matured, regional business destinations such as Jakarta, Phnom Penh and Yangon were added to its network, thereby broadening the airline's appeal beyond the holiday-maker to include the business traveler. SilkAir A319100 at Singapore Changi Airport, with a Singapore Airlines (parent company) Boeing 777 in the background. A major marketing overhaul was started in 1991, culminating on 1 April 1992, by giving the airline its present name and logo as a new corporate identity. The re-branded airline utilized up to six of the new Boeing 737-300s introduced just a year earlier. The mid-1990s saw two Airbus A310-200 aircraft in use and the expansion of services to India as well as mainland China. It was the first Asian carrier to offer handheld portable videoon-demand (VOD) in-flight entertainment in the form of the DigEplayer 5500, available on flights to selected countries. 3.1.6.2 Fleet SilkAir Airbus A320 at Davao International Airport, Philippines SilkAir began operations with 2 leased McDonnell Douglas MD-87 aircraft in 1989, before investing in its own fleet of six Boeing 737-300s, the first of which began operations in 1991. It operated two Airbus A310-200s for a brief period from 1993 to 1995 before they were transferred to Singapore Airlines, and two Fokker F70 from 1995 to 2000. It began replacing its Boeing fleet with Airbus aircraft when the first Airbus A320-200 arrived in 1998, and retired all Boeing aircraft a year later. On 20 December 2006, SilkAir signed an agreement to purchase 11 Airbus A320-200 aircraft with nine more on option. These aircraft will be delivered between 2009-2012.

3.1.6.3 Incidents and accidents On 19 December 1997, SilkAir Flight 185, operated by a Boeing 737-300 and piloted by Captain Tsu Way Ming, plunged into the Musi River in Sumatra during a routine flight from Jakarta to Singapore, killing all 104 people on board. The crash was investigated by various groups, with different results. The Indonesian NTSC, who were lead investigators, stated that they were unable to determine the cause, while the U.S. NTSB concluded that the crash resulted from an intentional act by a pilot, most likely the captain.

41

3.1.7 AIR ARABIA Air Arabia is a low-cost airline with its head office in the Sharjah Freight Center, Sharjah International Airport, in Sharjah, United Arab Emirates. The airline is the first and largest low cost airline in the Middle East, Air Arabia operates scheduled services to 46 destinations in the Middle East, North Africa, the Indian subcontinent, Central Asia and Europe to 22 countries from Sharjah, 11 destinations in 10 countries from Casablanca and 5 destinations in 5 countries from Alexandria. Its main base is Sharjah International Airport where it functions as a low cost conduit base, similar to low cost airport bases in Europe such as Rome Ciampino, London Stansted and Brussels South Charleroi Airport. Air Arabia separates it from many low cost carriers in that it offers connections to many flights at its base in Sharjah. It also offers some checked luggage at no cost. Air Arabia also has focus cities in Alexandria and Casablanca. Air Arabia is a member of the Arab Air Carriers Organization. 3.1.7.1 History

42 Air Arabia was established on 3 February 2003 by an Amiri decree issued by Dr. Sultan bin Mohamed Al-Qasimi, the Ruler of Sharjah and member of the Supreme Council of the United Arab Emirates, becoming the first low-fare airline in the region. The airline started operations on 28 October 2003 with the first flight from Sharjah, UAE to Bahrain International Airport. The airline was profitable from the first year of being in business. It launched a successful initial public offering for 55% of its stock early in 2007.

3.1.7.2 Joint ventures An Air Arabia Airbus A320-200 (2008) Air Arabia has created joint ventures at three international bases. The following countries have had or still do have JV airlines based there: Egypt Air Arabia Egypt (2010present) - On 9 September 2009, Air Arabia announced Air Arabia Egypt as a joint venture with Egyptian travel and tourism company Travco Group to be based in Alexandria, Egypt. The airline received its operating license on 22 May 2010, with commercial flights beginning 1 June 2010. The fleet in Egypt currently consists of three aircraft, two operating a scheduled service and one carrying charter traffic from Europe to the Red Sea. Jordan Air Arabia Jordan (TBA) - On 7 June 2010, Air Arabia announced that they had signed a deal with Tantash Group to form Air Arabia Jordan which will be based in Amman, Jordan. The proposed airline will operate flights from Queen Alia International Airport to Europe, Middle East and North Africa. On June 14 2011 the airline announced it was delaying plans to establish a hub in the country amid regional unrest and soaring fuel costs.

43 Morocco Air Arabia Maroc (2009present) - Air Arabia, in a joint venture with Moroccan investors established Air Arabia Maroc and set up a secondary base in Morocco's largest city, Casablanca; it began operations on 6 May 2009, allowing them to expand into Europe and Africa. The Maroc fleet currently consists of three aircraft serving mainly European destinations. Nepal Fly Yeti (20072008) - In 2007, Air Arabia opened a base in Nepal's capital Kathmandu to serve Asia and the Middle East, with the signing of a joint venture agreement with Yeti Airlines, establishing a low-cost carrier, called Fly Yeti that provided affordable and convenient service to a broad range of international destinations. Due to the uncertain political and economic situation prevailing in Nepal and lack of local government support, FlyYeti operations were suspended since early 2008. 3.1.7.3 Fleet As of November 2011, the Air Arabia fleet consists of the following aircraft, with an average age of 3.2 years. which are all equipped with 162/168 passenger seats in an alleconomy class cabin layout. Table No: 3.1.7.3.1 Air Arabia Aircraft In fleet Order Passengers 44 162/168

Airbus A320-214 27

Number of Business and Economy seats varies according to demand 3.1.7.4 Incidents and accidents

44 On 6 May 2006, an Armavia aircraft that was leased to Air Arabia at that time was destroyed in a hangar fire at Brussels Airport, along with four other airliners parked there.

3.1.8 COIMBATORE INTERNATIONAL AIRPORT

Coimbatore International Airport (INTERNATIONAL AIR TRANSPORT ASSOCIATION: CJB, ICAO: VOCB) is a customs airport located at Peelamedu, Coimbatore. It was previously known as Coimbatore Civil Aerodrome. It is about 17 km (11 mi) from the city center. It is located along Peelamedu and Neelambur, with passenger entry at Neelambur and cargo entry at Peelamedu. It is the eleventh largest airport in India in terms of total passenger movement and the second largest in Tamil Nadu, after Chennai International Airport. 3.1.8.1 History The airport had its commencement in the 1940s in the form of a civil aerodrome with just the Indian operating Fokker F27, Douglas DC-3 and Hawker Siddeley's Avro 748. For a considerable phase, the air services were restricted to the cities of Chennai and Mumbai. However, in the later years services to Cochin and Bangalore were also added. The airport in the 80s had a thorough transformation when it was closed down for runway expansion so as to enable modern days jets like Boeing 737 and Airbus A320 to operate. The year 1987 is a landmark in the history of this airport since on that year the project of runway expansion was completed and a new terminal started operation.

45 Nowadays, the airport is served by 10 airlines and 5 more are likely to initiate their operations in the coming years. In the meanwhile, two airlines, Silkair and Air Arabia, started operations to Coimbatore, linking Coimbatore with Singapore and Sharjah.

3.1.8.2 Airport with a Mission The airport had its commencement in the 1940s in the form of a civil aerodrome with just a few airplanes of the Indian Airlines. From that period for a considerable phase the air services were restricted to the cities of Chennai and Mumbai. However, in the later years services to Cochin and Bangalore were also added. The airport in the 80s had a thorough transformation when it was closed down for runway expansion so as to enable modern days jets like Boeing 737 and Airbus to operate. The year 1987 is a landmark in the history of this airport since on that year the project of runway expansion was completed and a new terminal started operation. Nowadays, the airport is served by 10 airlines and 5 more are likely to initiate their operations in the coming years. In the meanwhile, the reputed international airline SilkAir has started operations to Coimbatore, linking Coimbatore with Singapore. The other two international airlines that are operating from here are Air Arabia and Air India-Express. In the airport there is also a runway that is 10,000 feet in length and it is destined that the final expansion will expand it to12,500 ft in length. This will be done to handle wide bodied aircrafts in a better manner. There are two hangers in the airport. While one of them provides housing for the planes of Coimbatore Flying Club, the others provides shelter for private carriers. The airport has only one terminal and the other is under construction. The airport is on the verge of expansion and projects are being chalked out in this direction. The airport authority is pondering over the construction of a parallel taxiway to

46 reduce the runway occupancy time and turnaround of aircraft. In addition, plans for modernizing the present terminal with all modern facilities are sought after. 3.1.8.3 Infrastructure The new passenger terminal complex at Neelambur is used for passenger operations. The passenger terminal complex consists of a domestic terminal and an International terminal, although the complex is one continuous structure. The first part to be built was the old terminal at Peelamedu followed by the new domestic terminal with three aero bridges at Neelambur. The old terminal at Peelamedu is used for handling cargo. The airport has one runway that is 9,760 feet (2,970 m) in length extended from 8,500 ft (2,600 m). The airport can now accommodate larger aircraft such as the Boeing 747 and Airbus A330 because of this runway expansion. The runway is further slated to be extended to 12,500 feet (3,800 m) to handle wide bodied aircraft in a efficient manner. An Instrument Landing System (ILS) has also been installed. Although the cargo complex is one continuous structure, it was built incrementally, with the Domestic and International terminals being added in 2007 to the already existing terminal. The airport has a parking management system will be in place with separate entrance for VIP/Government and other exempted class of vehicles, with a dedicated area for parking for 12 vehicles. The airport parking area has the capacity to park 282 cars.

3.1.8.4 Facilities inside the airport Coimbatore Airport has many facilities like ATMs, money restore counters, checkup aid, dietetic and rinse etc. Travelers can make use of next facilities at the airport:

3.1.8.5 Proposed Expansion The further proposed expansion of the airport includes the construction of a parallel taxiway to the runway. This will minimize the runway occupancy time and turnaround of aircraft, as aircraft currently taxi on the runway. Two more parking bays will be added, raising the total number to eight. There are two hangars in the airport; one provides housing for the planes of Coimbatore Flying Club, the other provides shelter for private carriers. The airport has only one terminal and another is under construction. The airport is on the verge of expansion and projects are being chalked out in this direction. In addition, plans for modernizing the present terminal with all modern facilities are sought after. 3.1.8.6 Transport links The airport is located on the National Highway 47(Avinashi Road). Frequent bus services are available from the central bus stand in Gandhipuram and also from other auxiliary bus stations of Singanallur and Ukkadam. Cab services and auto rickshaws also provide commuting services from and to the airport. 3.1.8.7 Airlines and destinations Table No: 3.1.8.7.1

Chart No: 4.1.3

Interpretation From the above table 4.1.3, it shows that 34% are of below Rs.50,000 in their income level, 32% are of Rs.50,000 Rs.1,00,000 in their income level and 34% are of above Rs.1,00,000 in their income level.

Chart No: 4.1.7

Interpretation From the above table 4.1.7, it shows that 69% of respondents are preferred economic class, 19% of respondents are preferred business class and 12% of respondents are preferred first class.

Interpretation From the above table 4.1.9, it shows that 62% of respondents are satisfied, 21% of respondents are highly satisfied, 14% of respondents are neutral, 2% of respondents are dissatisfied and 1% of respondents are highly dissatisfied.

Table No: 4.1.10

Chart No: 4.1.10

Interpretation From the above table 4.1.10, it shows that 63% of respondents are satisfied, 18% of respondents are highly satisfied, 16% of respondents are neutral, 2% of respondents are dissatisfied and 1% of respondents are highly dissatisfied.

Chart No: 4.1.11

Interpretation From the above table 4.1.11, it shows that 50% of respondents are good, 26% of respondents are fair, 13% of respondents are poor, 9% of respondents are excellent and 2% of respondents are very poor.

Chart No: 4.1.12

Interpretation From the above table 4.1.12, it shows that 64% of respondents are satisfied, 13% of respondents are highly satisfied, 17% of respondents are neutral, 6% of respondents are dissatisfied and 0% of respondents are highly dissatisfied.

Chart No: 4.1.13

Interpretation From the above table 4.1.13, it shows that 54% of respondents are satisfied, 22% of respondents are highly satisfied, 20% of respondents are neutral, 4% of respondents are dissatisfied and 0% of respondents are highly dissatisfied.

Chart No: 4.1.14

Interpretation From the above table 4.1.14, it shows that 47% of Respondents are good, 36% of respondents are fair, 10% of respondents are excellent, 6% of respondents are poor and 1% of respondents are very poor.

Chart No: 4.1.15

Interpretation From the above table 4.1.15, it shows that 52% of respondents are good, 24% of respondents are fair, 17% of respondents are excellent, 7% of respondents are poor and 0% of respondents are very poor.

Chart No: 4.1.16

Interpretation From the above table 4.1.16, it shows that 46% of respondents are good, 23% of respondents are fair, 11% of respondents are excellent, 19% of respondents are poor and 1% of respondents are very poor.

Chart No: 4.1.17

Interpretation From the above table 4.1.17, it shows that 29% of respondents are good, 39% of respondents are fair, 9% of respondents are excellent, 17% of respondents are poor and 6% of respondents are very poor.

Chart No: 4.1.19

Interpretation From the above table 4.1.19, it shows that 53% of respondents are satisfied, 24% of respondents are highly satisfied, 16% of respondents are neutral, 4% of respondents are dissatisfied and 3% of respondents are highly dissatisfied.

Level Of CBE International Airport Comparing To Others

From the above table 4.3.2 it shows that the calculated value is higher than the table value. So, the H1 can be accepted and H2 can be rejected. H1= There is significant relation between gender and level of CBE international airport comparing to others. H2= There is no significant relation gender and level of CBE international airport comparing to others.

Residual 1.7 -2.3 .7

33.3 33.3 33.3

response level by CRM of airlines 83.600b 3 .000

From the above table 4.3.2 it shows that the calculated value is higher than the table value. So, the H1 can be accepted and H2 can be rejected. H1= There is significant relation between income level and response level by CRM of airlines. H2= There is no significant relation between income level and response level by CRM of airlines.

4.4 One Way ANOVA Test Table No: 4.4.1

73 One way income level BY quality of food served by airlines

Interpretation From the above table 4.3.2 it shows that the calculated value is higher than the table ANOVA Income level Sum of Squares Between Groups Within Groups 3.166 65.824 df 4 95 Mean Square .791 .693 F 1.142 Sig. .341

Total 68.990 99 value. So, the H1 can be accepted and H2 can be rejected. H1= There is significant relation between income level and quality of food served by airlines. H2= There is no significant relation between income level and quality of food served by airlines.

Interpretation From the above table 4.3.2 it shows that the calculated value is higher than the table value. So, the H1 can be accepted and H2 can be rejected. H1= There is significant relation between marital status and expectations matches with the reality of airlines. H2= There is no significant relation between marital status and expectations matches with the reality of airlines.

Table No: 4.4.3

75 ONEWAY gender BY cleanliness in time of your journey

ANOVA Gender Sum of Squares Between Groups Within Groups Total Interpretation From the above table 4.3.2 it shows that the calculated value is higher than the table value. So, the H1 can be accepted and H2 can be rejected. H1= There is significant relation between gender and cleanliness in time of your journey. H2= There is no significant relation between gender and cleanliness in time of your journey. .700 17.010 17.710 df 4 95 99 Mean Square .175 .179 F .977 Sig. .424

CHAPTER - V

76

Findings, Suggestions and Conclusion

5.1 Findings

Now a days aviation industry is facing a huge competition between the carriers. To know about the need and taste of customers is very much important. As the major marketing technique Frequent Flyer Programme has great influence in customers. The competition among FFP of major airlines is also high. So that innovative methods will help for the success of airlines. FFP as a loyalty based programme airline can retain the existing customers.

As per the response of respondent airlines in Coimbatore international airport seem to be ok on its quality of food providing in-flight for attracting the customers. Finding reveals 39% choose an airline because of its quality of food is neutral.

It is found that passengers expectations matches with the reality of airlines in Coimbatore international airport. 63% of people say yes. An obvious weakness is the high prices of airlines due to its huge investments in ordering aircrafts. Although it has opportunities many threats are concerning it, such as increase of oil prices, and the spread of killer diseases. The services employed by low cost carriers are significantly different from those employed by full service carriers. Low Cost airlines slash traditional fare structures in a bid to offer a new breed of highly price sensitive flyer the cheapest ticket.

5.2 Suggestions

77

Investigating technology is recommended for improving customer service and airlines has to sign contract with an e-business company that offers airlines technology solutions. E-CRM strategy is a new technology that airlines should implement since Internet users' number is increasing. It allows managing long term relationships with customers. Generally Airlines should do analysis for internal and external factors and its competitors and develop new strategies to stay competitive in the maturity stage. As the Airline industry is in the maturity stage, there is a strong competition between airline firms. Each firm should use offensive strategies besides doing analysis for internal and external factors that may affect its position. Airlines should aggressively market its product and services through innovative techniques.

Airlines should enhance its connectivity across the country and even outside in order to sustain the business. Promotional methods should be changed as per the current market Airlines should give more emphasis on the yield than the revenue

5.3 Conclusion

78 After detailed study, assessment and evaluation of primary and secondary data, it is significant to underline about how the aims and objectives of the thesis work were analyzed. The research study attempts to understand and critically analyze the customer satisfaction in airline industry with special reference to Coimbatore International Airport. Therefore to examine this, the investigation was executed to identify the main service determinants of Airlines and based on these to gauge the satisfaction levels of the passengers and also to evaluate the passenger satisfaction and quality of service among travelers in airlines and further to emphasize the several measures taken by them to provide excellent customer service to its passengers. Further in-depth study revealed that customers who fly were more concerned with the ticket fares and also few passengers responded that they were worried about the baggage facilities and few of them expressed security issues as an area of concern. After closely examining, it is clearly understood that airline passengers judge the quality of flight services offered to them on the basis of prompt arrivals and departures, air fares and then based on the various facilities such as safety, food & beverages, attitude of staff, baggage to name a few. Overall conclusion may be interpreted from the passenger interview, feedbacks and secondary data on airline industry, it is evident in airline industry attaining that excellent passenger satisfaction is little beyond the

reach of a specific airline when the competition is worldwide. In today's global economy people are more educated and intend to travel internationally both for work and leisure purposes than before and they enjoy travelling to more locations very easily and with better value of money. Therefore, the passenger insists for better connectivity, reasonable ticket prices and improved flight services than before. In today's competitive world with many best alternatives available to the passengers it is very critical for the airlines to meet the passenger satisfactions and offer excellent service to reach great heights in the near future.

81 A Study on Passenger Satisfaction in Airline Industry with Special Reference to Coimbatore International Airport Greetings:I Aravindraj.R Final year MBA student from Excel Business School in Komarapalayam ,Tamil Nadu .I am going to do a project on the above topic in your esteemed organization. Hence, I request you to give your valuable opinion regards the below statement. Your opinions will be kept as confidential. Personal Details:1. Name

82 3. How do you feel about the BAGGAGE HANDLING process for air carriers in CBE international airport? a) HS a) Excellent airline clarifications? a) HS b) S c) N d) DS e) HDS b) S b) Good c) N c) Fair d) DS d) Poor e) HDS e) Very Poor 4. What is the level of CBE international airport comparing to others? 5. What is the response level by CRM of airlines in CBE international airport regarding

B) LEVEL OF SATISFACTION IN AIRLINES 6. How do you feel about ticket booking process for air carriers in CBE international airport? a) HS b) S c) N d) DS e) HDS 7. How do you rate the handling of DELAYS & CANCELLATION of airlines in CBE international airport? a) Excellent a) Excellent a) 1 a) 1 a) YES a) HS a) YES b) 2 b) 2 b) NO b) S b) NO c) N d) DS e) HDS b) Good b) Good c) 3 c) 3 c) Fair c) Fair d) Poor d) Poor d) 4 d) 4 e) Very Poor e) Very Poor e) 5 e) 5 8. How do you rate ON TIME PERFORMANCE of flights in CBE international airport? 9. Rate the scale of behavior of air hostess and stewards in INFLIGHT. 10. Rate the scale of quality of food served by the air carriers. 11. does your expectations matches with the reality of airlines in CBE international airport. 12. How do you feel about the cleanliness in the time of your journey? 13. Do you like the inside environment of CBE international Airport.